Textile Staples Market CAGR to Grow at 4.9%

In terms of value, the global market size of the textile staples market is expected to expand from nearly US$ 125 Bn in 2017 to over US$ 200 Bn by 2027, registering a CAGR of 4.9% during the forecast period 2017 – 2027. The global textile staples market is expected to create total incremental opportunity of nearly US$ 82 Bn between 2017 and 2027. Several factors are responsible for this significant market growth.

Growth in the automotive and transportation sector in APEJ region bodes well for the textile staples market

Textile components are widely used in transportation vehicles and systems including cars, trains, buses, airplanes and marine vehicles. The automotive sector is witnessing rapid development in China along with parts of Southeast Asia. In a fluctuating economic environment, the Chinese automotive industry has registered steady sales growth. Also, India’s economy is expected to grow at a robust pace in the coming years as most economic indicators predict a positive outlook towards the automotive industry, driven by strong consumer demand. This in turn will have a positive effect on the textile staples market during the forecast period.

Growth in per capita spending in the APEJ region boosts the global textile staples market

APEJ has been regarded as a source region of exports, as China and other developing countries such as India are significant producers of textile staples. However, the region is slowly becoming an important consumer as well, because of consistent growth in incomes driving demand for textile staples. In recent years, there has been a rapid increase in household cotton consumption in developing regions than in other parts of the world. The increased penetration of organised retail is also likely to boost the consumption of textiles in the domestic markets, especially in India.

Cyclical pattern of textile staples market may limit the growth of this market

The historical market scenario of the textile staples market reflects the cyclical pattern of the industry including natural as well as synthetic fibre with periodic overcapacity and resulting pressure on pricing. This cyclical nature arises, in part, from investments made at the top of the cycle for cashing high margins with available funds, thereby shifting the balance of supply to demand as new capacity comes on-stream in large quantities. In the absence of sufficient economic growth to generate increased demand, or the closure of facilities to mitigate the effect, new capacity causes a period of regional or global overcapacity often leading to downward pressure on margins. It is anticipated that this cyclical pattern may hamper the growth of the market at a global level during the forecast period.

Global Textile Staples Absolute $ Opportunity Analysis by Application

Apparel is expected to create a total incremental opportunity of nearly US$ 30.5 Bn between 2017 and 2027. The segment is anticipated to register a CAGR of 3.6% over the forecast period. Interior Flooring is expected to create a total incremental opportunity of nearly US$ 7 Bn between 2017 and 2027. The segment is anticipated to reach a market value of nearly US$ 18 Bn by 2027 end, at a CAGR of 4.6% over the forecast period. Automotive is expected to create a total incremental opportunity of nearly US$ 15 Bn between 2017 and 2027. The segment is anticipated to witness a CAGR of 7.5% over the forecast period.

In terms of value, the global market size of the textile staples market is expected to expand from nearly US$ 125 Bn in 2017 to over US$ 200 Bn by 2027, registering a CAGR of 4.9% during the forecast period 2017 – 2027. The global textile staples market is expected to create total incremental opportunity of nearly US$ 82 Bn between 2017 and 2027. Several factors are responsible for this significant market growth.

Growth in the automotive and transportation sector in APEJ region bodes well for the textile staples market

Textile components are widely used in transportation vehicles and systems including cars, trains, buses, airplanes and marine vehicles. The automotive sector is witnessing rapid development in China along with parts of Southeast Asia. In a fluctuating economic environment, the Chinese automotive industry has registered steady sales growth. Also, India’s economy is expected to grow at a robust pace in the coming years as most economic indicators predict a positive outlook towards the automotive industry, driven by strong consumer demand. This in turn will have a positive effect on the textile staples market during the forecast period.

Growth in per capita spending in the APEJ region boosts the global textile staples market

APEJ has been regarded as a source region of exports, as China and other developing countries such as India are significant producers of textile staples. However, the region is slowly becoming an important consumer as well, because of consistent growth in incomes driving demand for textile staples. In recent years, there has been a rapid increase in household cotton consumption in developing regions than in other parts of the world. The increased penetration of organised retail is also likely to boost the consumption of textiles in the domestic markets, especially in India.

Cyclical pattern of textile staples market may limit the growth of this market

The historical market scenario of the textile staples market reflects the cyclical pattern of the industry including natural as well as synthetic fibre with periodic overcapacity and resulting pressure on pricing. This cyclical nature arises, in part, from investments made at the top of the cycle for cashing high margins with available funds, thereby shifting the balance of supply to demand as new capacity comes on-stream in large quantities. In the absence of sufficient economic growth to generate increased demand, or the closure of facilities to mitigate the effect, new capacity causes a period of regional or global overcapacity often leading to downward pressure on margins. It is anticipated that this cyclical pattern may hamper the growth of the market at a global level during the forecast period.

Apparel is expected to create a total incremental opportunity of nearly US$ 30.5 Bn between 2017 and 2027. The segment is anticipated to register a CAGR of 3.6% over the forecast period. Interior Flooring is expected to create a total incremental opportunity of nearly US$ 7 Bn between 2017 and 2027. The segment is anticipated to reach a market value of nearly US$ 18 Bn by 2027 end, at a CAGR of 4.6% over the forecast period. Automotive is expected to create a total incremental opportunity of nearly US$ 15 Bn between 2017 and 2027. The segment is anticipated to witness a CAGR of 7.5% over the forecast period.

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